Ryanair’s imminent price increase will reduce the accessibility of international travel, says GlobalData & More Latest News Here – Up Jobs

 

Following the news that Michael O’Leary, the chief executive of Ryanair, has decided to increase prices to cope with rapidly rising fuel costs;

Benedict Bradley, Thematic Analyst at GlobalData, a leading data and analytics company, offers his view: “Budget airlines such as Ryanair has enabled more and more people to travel abroad. However, the rising ticket prices will only compound the current cost-of-living crisis, and those already struggling could be priced out of the travel market. When it comes to the pressures on international travel, it appears that the cost-of-living crisis is going to pick up where the pandemic left off—with domestic travel numbers booming, but foreign travel under the pressure of hundreds of cancellations.”

“While the price increase will be relatively insignificant for some, others will have to reconsider their holiday plans in the coming years. Weekend breaks abroad may become unfeasible as people pinch pennies to pay off sky-rocketing energy bills. According to GlobalData’s forecast, UK international travel numbers will surpass pre-COVID levels by 2024, but rising ticket prices put this in jeopardy. When asked in GlobalData’s Q2 2022 consumer survey, 66% of UK respondents said they were either extremely or slightly concerned with the impact of inflation on their household budget. Travel may be the first thing to go to ease these cost-of-living problems.”

Keir Maclean, Thematic Analyst at GlobalData, offers his view: “The rise in ticket fares is being driven by a dramatic increase in fuel costs. Since the beginning of 2022, the price of jet fuel has risen by 90%*. Ryanair is the first budget airline to publicly declare the end of super low-cost flights. However, fuel price inflation is not exclusive to Ryanair and will drive up overhead costs across the industry, negatively impacting not just Ryanair but competitors such as EasyJet and Wizz Air. This is not good news for holidaymakers.”

“As shorter, city breaks become less affordable, we may see a shift towards families choosing to take fewer, longer trips to reduce their overall expenditure on flights.”

*US Energy Information Administration (EIA); Federal Reserve Bank of St. Louis (FRED) economic data.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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